Ethanol Market and Pricing Data – May 28, 2019

Ethanol, Fuels and Co-Product Pricing

Market Outlook: U.S. ethanol prices ended last week up 1.7 percent; they continue up this week (+5.5 percent) in early week trading. Midwest wholesale rack ethanol prices were up 1.1 percent to end last week; they continue up this week at 39.80 cents/liter (150.67 cents/gallon) through Tuesday’s trading.

FOB Houston ethanol prices finished last week up 1.5 percent; prices are up 3.4 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 39.52 cents/liter (149.61 cents/gallon). FOB Santos, Brazil ethanol prices ended last week down 2.5 percent; they are down 0.8 percent from Friday’s close and stand at 49.65 cents/liter (187.98 cents/gallon) through Tuesday’s trading.

The FOB Gulf-Santos, Brazil spread narrowed again from last week’s close through Tuesday’s trading and is currently at -10.13 cents/liter (-38.36 cents/gallon).

MTBE prices were up to end last week; they are down 2.7 percent to start this week. MTBE’s premium to FOB Houston ethanol narrowed from last week and now stands at 11.43 cents/liter (43.29 cents/gallon).

BTX component prices were mixed to end last week and continue mixed through Tuesday’s trading: Benzene is up 0.7 percent; Toluene is down 2.8 percent and Xylene is down 2.6 percent. The estimated weighted average aromatic price is currently 67.14 cents/liter (254.14 cents/gallon), down 2.3 percent from last Friday’s close. The BTX-Houston ethanol spread narrowed from last week; the weighted average BTX price is now 27.61 cents/liter (104.52 cents/gallon) higher than the FOB Houston ethanol price.

Gasoline and petroleum products were down to end last week and are mostly up through early-week trading. Regarding RBOB futures, 84 (Houston) and 87 (U.S. Gulf) octane gasoline prices are up 1.2 percent and 1.7 percent, respectively. WTI futures are down 0.1 percent to $58.55/barrel while Brent futures are up 1.3 percent to $69.60/barrel, from Friday’s close through Tuesday’s trading.

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